Leela Hotels (Schloss Bangalore Ltd) runs the famous Leela Palaces, Hotels & Resorts brand. It operates 13 luxury hotels across India with about 3,553 rooms. Founded in 1986 by Captain C.P. Krishnan Nair, it is now backed by global fund Brookfield Asset Management.
In 2019, Brookfield bought most of The Leela’s top hotels for around ₹3,950 crore. Now, Schloss Bangalore is going public, giving everyday investors a chance to own a slice of this hotel chain.
History of Leela Hotels
Leela started with a single Mumbai hotel in 1986 and expanded into major cities like Delhi, Bengaluru, Chennai, Udaipur, etc. By FY2025, it is running 13 hotels (5 owned, 7 managed, 1 franchise) and has 8 more in the pipeline (833 rooms by 2028).
The brand has won international awards (Travel + Leisure ranked it India’s #1 hotel brand in 2020 and #3 in 2023). In May 2025, Schloss Bangalore filed its IPO prospectus. It originally aimed for a ₹5,000 crore issue, but then cut back to ₹3,500 crore. This IPO, if successful, will be the largest ever in India’s hotel sector.
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Why Leela Hotels is going public?
The main aim of the IPO is to repay debt. Schloss Bangalore has taken on big loans to build and acquire hotels. Company management says about ₹2,300 crore of the IPO’s fresh proceeds will go to pay down borrowings. The CEO noted this would make the company essentially debt-free after listing. The remaining proceeds (from the ₹2,500 cr fresh issue) will be used for general corporate needs. The IPO also includes an offer-for-sale (OFS) of ₹1,000 cr by promoters, but the fresh funds are mostly to clean up the books.
IPO details
Leela Hotels set a price band of ₹413–₹435 per share. The IPO is open for subscription from 26–28 May 2025 (anchor bids on 23 May). Bids start at 34 shares (≈₹14,790 at the top band). The issue will list on the NSE and BSE, with trading likely to begin around 2 June 2025.
Key IPO details are:
| Detail | Information |
| Issue Period | 26–28 May 2025 (Anchor: 23 May) |
| Price Band | ₹413–₹435 per share |
| Total Issue Size | ₹3,500 crore (Fresh: ₹2,500 cr; OFS: ₹1,000 cr) |
| Lot Size | 34 shares (≈₹14,790 @ ₹435) |
| Listing Date | ~2 June 2025 (NSE & BSE) |
Financials at a Glance (FY2023–25)
Schloss Bangalore’s recent finances show a recovery.
| Fiscal Year (Mar) | Revenue (₹ Cr) | Profit/(Loss) (₹ Cr) |
| 2023 | 860.06 | (61.68) |
| 2024 | 1,171.45 | (2.13) |
| 2025 | 1,300.57 | 47.66 |
From FY2023 to FY2025, revenue grew from ₹860 cr to ₹1,300 cr. The company swung from a ₹61.68 cr loss (FY2023) to a ₹47.66 cr profit (FY2025). This turnaround was driven by higher occupancy and room rates as travel rebounded post-pandemic.
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Shareholding Pattern (Pre and Post-IPO)
Currently, Schloss Bangalore is 100% promoter-owned. After the IPO (assuming full subscription), promoters will hold about 75.91% and the public (QIB/NII/Retail) ~24.09%.
| Shareholder | Pre-IPO (%) | Post-IPO (%) |
| Promoters (including Brookfield group) | 100.00 | ~75.91 |
| Public (Investors) | 0.00 | ~24.09 |
This means roughly a quarter of the company will be owned by new investors, and about three-quarters by existing promoters.
Pros and Cons: Should you invest?
Advantages:
- Brand strength & rebound: Leela is a marquee luxury hotel chain. After COVID lows, business is bouncing back. FY25 saw an ~11% revenue increase and a return to profit. Industry reports forecast demand for luxury hotel rooms growing ~10.6% annually (FY24–28) versus supply ~5.9%, suggesting room for Leela’s expansion.
- Debt reduction: With ₹2,300 cr earmarked to clear loans, the post-IPO company should have a cleaner balance sheet. That frees up cash for growth or shareholder returns later.
- Travel tailwinds: India’s tourism is rising. Domestic tourism is projected to grow by ~13% per year (2024–30) and foreign tourist arrivals by ~7%. More travellers can fill hotel rooms and boost revenues.
- IPO buzz: Large IPOs tend to attract investor interest. This is the biggest hotel IPO ever, so retail investors may be eager. Buying Leela stock is like “owning” a vacation spot you might visit someday.
Disadvantages:
- Cyclical swings: Hotel revenues swing with the economy, seasons and events. A recession or travel disruption could hit profits. CRISIL notes that the industry is susceptible to cyclicality. Leela had losses when travel demand fell, and the stock could suffer if conditions worsen.
- High valuation: The IPO values the company richly. Analysts point out that Schloss Bangalore’s P/E (price-to-earnings) would be about 220 for FY2025, versus roughly 60 for established peers. This means the stock is priced for strong growth – if growth slows, the share price may pull back.
- Limited float: Only ~24% of equity is being sold to the public. Low free-float can lead to volatile swings and less trading volume. It also means promoters retain heavy control, which might concern some investors.
- Competition & costs: Luxury hotels are expensive to operate (staff, upkeep, renovations) and compete with other chains (Taj, Oberoi, Hyatt, etc.) as well as alternative lodging (Airbnb, homestays). Maintaining high occupancy and rates is challenging.
- IPO uncertainty: Unofficial grey-market data shows a premium of roughly ₹18 per share (22 May), reflecting positive sentiment. But grey market prices are volatile and not a guarantee. IPO stocks can be unstable in early trading.
Bottomline
Leela Hotels’ IPO gives investors a chance to buy into a well-known luxury brand. The positives are clear: a strong name, improving profits, and a much cleaner balance sheet once debt is paid off. The negatives are real too – the hotel business is cyclical, and this IPO comes at a premium valuation.
Investors need to ask: Do you believe in India’s travel boom? Can you handle market swings? If yes, Leela’s IPO could be an exciting way to “own” a piece of the hospitality sector (maybe even your next holiday spot). But invest wisely: read all details, compare with other IPOs, and only commit what you can afford.
